Synopsys (NASDAQ:SNPS) Updates FY 2026 Earnings Guidance

Synopsys (NASDAQ:SNPS) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 15.040-15.100 for the period, compared to the consensus earnings per share estimate of 13.960. The company issued revenue guidance of $9.7 billion-$9.7 billion, compared to the consensus revenue estimate of $9.7 billion. Synopsys also updated its Q4 2026 guidance to 4.100-4.160 EPS.

Synopsys Stock Performance

SNPS stock opened at $410.00 on Thursday. Synopsys has a 12-month low of $366.00 and a 12-month high of $615.79. The firm has a market cap of $78.51 billion, a P/E ratio of 94.91, a P/E/G ratio of 2.40 and a beta of 1.23. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.33. The stock’s 50 day simple moving average is $416.71 and its 200 day simple moving average is $439.84.

Synopsys (NASDAQ:SNPS) last announced its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating the consensus estimate of $3.67 by $0.24. The business had revenue of $2.48 billion during the quarter, compared to analysts’ expectations of $2.44 billion. Synopsys had a return on equity of 5.83% and a net margin of 8.91%.The company’s quarterly revenue was up 42.4% on a year-over-year basis. During the same quarter last year, the business posted $3.39 earnings per share. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. As a group, equities research analysts predict that Synopsys will post 10.64 EPS for the current year.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $580.00 price target on shares of Synopsys in a report on Thursday, May 28th. Zacks Research cut shares of Synopsys from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 21st. Rosenblatt Securities restated a “buy” rating and issued a $575.00 price objective on shares of Synopsys in a research report on Tuesday. Stifel Nicolaus increased their price objective on Synopsys from $550.00 to $600.00 and gave the company a “buy” rating in a research report on Thursday, May 28th. Finally, Berenberg Bank set a $633.00 price target on Synopsys in a research note on Wednesday, May 27th. Eleven analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $563.71.

Insider Activity at Synopsys

In other Synopsys news, CFO Shelagh Glaser sold 3,394 shares of Synopsys stock in a transaction on Friday, June 12th. The shares were sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the completion of the transaction, the chief financial officer directly owned 14,358 shares of the company’s stock, valued at $6,461,387.16. The trade was a 19.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,603 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the completion of the sale, the chief executive officer directly owned 75,020 shares of the company’s stock, valued at $34,431,179.20. This represents a 16.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.56% of the stock is owned by corporate insiders.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys reported fiscal Q3 revenue of $2.477 billion, up 42.4% year over year, while non-GAAP EPS of $3.91 exceeded the $3.67 consensus estimate. GAAP EPS was $2.84, compared with $1.51 a year earlier. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Management raised fiscal 2026 guidance to approximately $9.715 billion in revenue and $15.07 in non-GAAP EPS at the midpoint. Fourth-quarter EPS guidance of $4.10-$4.16 also sits above the $3.78 consensus estimate, supporting confidence in continued demand. Synopsys raises annual forecasts on AI-driven chip design software demand
• Positive Sentiment: Synopsys cited broad-based strength in Design Automation and sustained AI-related investment in semiconductor and infrastructure development. Its partnership with Nvidia, including Nvidia’s reported $2 billion investment, reinforces the long-term AI engineering opportunity. Nvidia’s $2 Billion Synopsys Bet Signals AI’s Next Frontier
• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and maintained a $575 price target, implying substantial upside from the reference price. Rosenblatt Reiterates Buy Rating on Synopsys
• Neutral Sentiment: The earnings call emphasized Synopsys’s shift toward autonomous engineering systems and significant customer productivity gains from AI, strengthening the long-term narrative but also raising investor expectations. Synopsys Q3 2026 Earnings Call Transcript
• Negative Sentiment: Despite the earnings beat and raised outlook, SNPS traded lower after the release. Fourth-quarter revenue guidance of $2.53-$2.58 billion is slightly below the roughly $2.6 billion consensus, while the stock’s elevated valuation—near 95 times earnings—leaves limited room for execution concerns or merely incremental guidance improvements.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SNPS. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Synopsys in the fourth quarter valued at about $28,000. Atlas Capital Advisors Inc. purchased a new position in Synopsys in the fourth quarter worth $32,000. Kemnay Advisory Services Inc. bought a new stake in shares of Synopsys during the 4th quarter worth $35,000. Greenline Wealth Management LLC purchased a new position in Synopsys in the fourth quarter valued at approximately $37,000. Finally, WealthCollab LLC lifted its holdings in Synopsys by 110.8% during the third quarter. WealthCollab LLC now owns 78 shares of the semiconductor company’s stock valued at $38,000 after purchasing an additional 41 shares during the last quarter. 85.47% of the stock is owned by institutional investors and hedge funds.

About Synopsys

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.